‘We have al­ready in­vested around crore in this busi­ness’

Voice&Data - - NEWS AND VIEWS - MD, Ox­i­gen V&D Cor­re­spon­dent

What was the premise of de­vel­op­ing the mini ATM?

This de­vice is ac­tu­ally an im­prove­ment over our pre­vi­ous de­vice; it has an an­tenna that can take care of poor cov­er­age inside a build­ing. It also has a bat­tery back-up so the de­pen­dency on elec­tric­ity is no more an is­sue. It was built to ad­dress the need of the re­tailer; stan­dard POS ter­mi­nals for ac­cept­ing credit cards and mak­ing pay­ments through a gate­way to the bank. It’s a busi­ness de­vice rather than a pay­ment de­vice.

What are the charges in­volved in avail­ing these ser­vices?

When you do a top-up we will not charge you any­thing ex­tra but there are cer­tain ser­vices where the cus­tomer will pay for con­ve­nience, ie, book­ing air tick­ets and rail tick­ets. In our sys­tem we have all the pay­ments which are well de­fined. With the pas­sage of time, I be­lieve the cus­tomer shouldn’t be pay­ing any­thing at all be­cause of high mar­ket com­pe­ti­tion. We might be charg­ing a lit­tle more be­cause we are pro­vid­ing these ser­vices close to the cus­tomer’s home, which will save his time. The cus­tomer should not have any prob­lem in pay­ing these ex­tra charge, which will be de­cided by the bank it­self.

What kind of dis­tri­bu­tion strat­egy are you opt­ing for?

We have re­al­ized that to in­stall a ma­chine you need to ap­point a re­tailer, where some sell­ing is re­quired. This is known as sell­ing through in­ter­me­di­aries, which we call RMUs (Re­tail Man­age­ment Units). Ev­ery RMU is given an area and that area will be iden­ti­fied with the help of his own staff. Our peo­ple will be there to help but the main work needs to be done by the RMUs. Now that we want to ex­pand our cov­er­age to small towns and vil­lages we have to do it fast.

In the last few years we have in­stalled around 50,000 ter­mi­nals and we have 100,000 to­tal re­tails, some of our re­tail­ers have web con­nec­tiv­ity, some are given ac­cess on mo­bile phones it­self. But be­cause we want to pro­mote bank­ing ser­vices—cash in and cash out —there­fore the ter­mi­nal is very im­por­tant. Now we want to in­crease the ter­mi­nal to 500,000 in the next 5 years and we need trained man power not only to sell the idea to re­tail­ers but also to in­stall the ma­chine.

The man­power in ev­ery area should be able talk to the peo­ple and con­vince them to use the ma­chine for their own ben­e­fit.

How much in­vest­ment have you made in this project?

We have al­ready in­vested around 200 crore in this busi­ness and we plan to put an ad­di­tional 300 crore over the next 3 to 5 years but what it pro­motes is 25,000 crore worth of busi­ness. When we say that we are pro­vid­ing this chan­nel as a busi­ness ma­chine to the re­tailer it means that we can go on adding more and more busi­ness and help the re­tailer to gen­er­ate more busi­ness.

vad­mail@cy­ber­me­dia.co.in

Pramod Sax­ena

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